(Updates with full report)
MILAN (Thomson Financial) - Share prices closed higher, supported by strong second quarter earnings from European companies, and led by Impregilo on a major Kuwait order and prospects for Italian rail projects, brokers said.
The Mibtel index rose 0.86 pct to 33,118 points and the S&P/Mib was up 0.88 pct to 42,121.
Volume traded was an estimated 4.392 bln eur.
The positive outlook for earnings, including upgrades for some companies forecasts, offset yesterday's Fed worries on inflation.
In particular, brokers referred to today's SAP second quarter results and yesterday's Heineken figures and the resulting market reaction.
One broker said the strong support today could see the market testing new highs.
Impregilo led the gainers, up 6.75 pct at 6.44 eur, after winning a 480 mln usd desalination order in Kuwait.
One broker said government efforts to win EU funding for a Turin/Lyon railway project is another positive factor for Impregilo, which has handled other rail projects in Italy.
STMicro rose 2.48 pct to 14.38 and Finmeccanica was up 2.33 pct at 23.25.
Telecom Italia was up 1.93 pct at 2.11 after announcing the sale of its investment in Brazil fixed line activities. Antitrust delays in Brazil are slowing a change in Telecom Italia ownership.
Brokers said that while the Brazil sale was expected. One said: 'We view positively management's ability to close a complicated deal.'
Mediaset eased 0.03 pct to 7.745, giving up gains earlier in the session. The share is reacting to possible legislative changes aimed at overturning laws introduced by the previous government led by Mediaset owner Silvio Berlusconi.
One broker said the current government's reform may not win support in the upper parliamentary house, the senate, adding the EU is challenging the last government's legislation.
On the negative side, Buzzi Unicem continued recent falls, off 3.11 pct at 23.35, on profit-taking. Italcementi was up 1.03 pct to 21.59.
Alitalia lost 3.02 pct to 0.748 after the government yesterday evening said the current privatisation process is closed, without any bids forthcoming.
Analysts said they see the government starting direct talks with companies, with Italy's Air One and Air France leading contenders to buy Alitalia.
Fiat gained 1.04 pct to 23.36 ahead of results next Tuesday, expected to a further rise from impact of restructuring and new models.
Eni was up 0.54 pct at 27.83, after recent falls, and as oil prices rise further.
Among banks, Unicredito rose 0.69 pct to 6.53. The stock has been depressed recently on concerns of it taking on too many acquisitions.
Intesa Sanpaolo rose 1.37 pct to 5.485.
DiaSorin was up 1.06 pct at 12.38 on its first day of trading after an IPO. nigel.tutt@thomson.com nt/lam COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
